Edwin Pena Is A Part Of A New Breed Of Hackers

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Accused computer hacker Edward Pena is shown here with the Valvoline girls -- the company sponsored his souped-up BMW, which cops say was paid for by defrauding VOIP companies.

When many people think of a professional computer hacker, they think of a teenager cracking passwords in their bedroom. Not anymore. Cyber criminals are no longer trying to make a name for themselves online: they are hacking for profit. Cops say that's what lured Edwin Pena into stealing millions of dollars without ever having to leave his home.

In November of 2004, authorities claim Pena crafted an elaborate plan that would allow him into the networks of Internet phone companies, like Vonage, and illegally sell their services to unsuspecting telecom businesses. This transaction would allow Pena to keep 100% of the profits, and no one would have a clue.

But cops say Pena couldn't put his plan in action alone. They say he tracked down a software developer with expert computer skills to do his dirty work for him. The unlucky guy, Robert Moore, allegedly took Pena's $20,000 bait and became an accomplice to computer fraud.  

Illegal Activity In Progress

With his team in place, police say Pena and Moore were able to rack up more than 500,000 unauthorized calls and make over $1 million in profits. Cops claim Pena used the money to purchase a number of luxury items, including a slick BMW M3 sports car, a 40-foot SeaRay Mercruiser, a 2005 Cadillac Escalade SUV, and some real estate. His accomplice, Moore, was only able to pay for his parents' medical bills.

Their hack job went on for more than a year. Cops say Pena and Moore were able to cover up their tracks by using a complex web of server connections and online trickery. Police tell AMW it wasn't until June of 2006 that they were able to catch up to their illegal activity. According to police reports, the victimized phone companies started putting things together when their bills didn't match up. Through some extensive research, FBI agents were able to track down the culprits, and lock them up.

Not Without A Fight

Pena was expected to serve a maximum of 22 years in jail, but this hacker wasn't going down without a fight. The judge gave Pena a $150,000 bail, assuming it would be hard to meet. As it turns out out, it wasn't. Police claim Pena sold most of his luxury items and placed two of his girlfriends' homes to meet the bail. Moore remained in police custody and was sentenced to two years in prison.

Police believe Pena may have fled the country and escaped to his hometown in Venezuela. Pena has been issued a social security number within the last three years, which now makes him a legal resident of the U.S. 

Authorities are confident Pena is still up to his old tricks and wreaking havoc internationally. US Attorney Erez Liebermann has said that he will prosecute Pena to the full extent of the law: he wants to make an example that hacking will not go unpunished.

--by Shelaney Campbell, AMW Staff

Alleged Cyber-Thief Edwin Pena Arrested In Mexico

When accused cyber thief Edwin Pena fled the country to a place from which he knew he could not be extradited, the FBI says they thought it would be nearly impossible to arrest him.

That was until, Friday, Feb. 6, 2009. Pena was spotted in Mexico and picked up by authorities.

Pena will remain in Mexico until the FBI is able to extradite him back to the United States.

Once it happens, authorities say Pena will go to trial for computer fraud, facing claims from companies that he caused them to go bankrupt.

Even more damaging, the FBI says, will be a former friend, who helped him enact the alleged crime, who will now testify against him.